13 Shocking Reasons You're always Struggling Financially And How To Fix It

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Almost 70% of Americans struggle financially according to CBS News. Have you ever wondered why so many people struggle financially and why you are not able to get financial stability?

The most vital reason why you are always struggling financially is that you don’t understand money and don’t know how to use it. The simple truth is: If money going out is more than money coming in, then you will struggle.

I know it seems very basic but many people don’t even pay attention to the basic details.

If you apply this simple basic rule, your life can change forever.

Now many other reasons have compound effects on your overall financial stability.

And this is what this post is all about. I will show you what are the top 13 reasons why you are still struggling financially and what you can do about it.

13 Reasons Why You Always Struggle Financially

1. You Don’t Understand How Money Works

In today’s world, it seems like everyone is chasing money. But the truth is: No one ever got rich chasing money. In fact, if you chase excellence, money will follow.

In simple terms, you get paid for the value you put out in the world. Not the amount of work you do. That’s why every successful person will tell you to invest in yourself first.

For instance, a masonry worker can work really hard. But if he chooses to stay at this level, he will never get rich. He must constantly upgrade himself and build a system that will allow him to scale his business further.

The reason why most people struggle with their finances is that the 9 to 5 system is designed to keep you poor or at least middle class.

For you to have more money, it is crucial to create at least 1 source of passive income which is scalable.

2. You Don’t Have The Abundance Mentality

Having an abundance mentality is crucial for you to be able to see opportunities where most people see only hurdles.

This is something that almost everyone struggles with.

The thing is: almost 90 % of the population has been trained to focus on problems instead of seeing any hidden opportunity.

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Let me give you a simple example:

I am sure almost every day you hear people complaining about products or services that they purchased. It’s something very normal. But behind that complaint lies an opportunity for you to create a business.

If you can find an effective solution to people’s complaints and problems you can potentially build a very successful business.

I can still remember when I first started my photography business (Yes I am a part-time photographer), many people complained that photographers in my region only took posed photos.

They only focused their marketing efforts on showing posed pictures for weddings. So, I decided to do something very different. I focused on capturing moments that actually helped me stand out from the crowd.

Why I am telling you all this?

Well, it’s because every day you will be presented with opportunities that you never even realized. It lies in front of you. You just need a little practice to see it.

Pro Tip: Next time you hear someone complaining, try to think about what you can do to solve their problem. This will change your perspective in ways that you cannot even imagine.

3. You Waste Too Much Time On Things That Don’t Generate Income

Now, I am sure you will justify everything that you do daily, Right? But, have you ever spent a few minutes reflecting on that?

I bet, if you write down everything that you have done in 1 week on an excel sheet, you will be shocked at the amount of time you spend on things that don’t generate any income.

Just pause for a second and think about:

How much time does it take to commute to your office? Think about how you can use this time effectively. Maybe reading a blog post or a book.
How much time do you spend watching tv? That time can be spent creating your own business.
How much time do you spend talking to people about unnecessary things that won’t make you a better version of yourself? That time can be spent with quality people talking about business.
How much time do you spend on social media, watching things that will lead you to more depression?
How much time daily news consumes your energy – Is it really worth knowing everything that is happening all around the world?

And the list goes on.

Pro tip: If you want to get financial stability, you should change your circle, or maybe spend more time alone developing yourself.

4. You Don’t Have A Purpose

This is huge. I know many people who are 30,40,50 and even 60 who don’t have a purpose in their life. When I ask them this question, they look at me as if I have lost my mind.

My dear friend, having a purpose will give you direction, help you stay on track, and most importantly it will keep you happy.

As Tony Robin said: “Happiness is found in progress”. And having a purpose will force you to make progress.

So, take some time to reflect on that. Without purpose, you will just go with the flow which will result in living a mediocre life.

The thing is: Almost everyone in your surrounding goes with the flow. And if you choose the same path as those people, you will end up just like them.

5. You Don’t Reflect On Life

I know everyone is busy these days. But have you ever paused for just a few days and reflected on your life and questioned if the things that you are doing right now will really help you to live the life that you desire?

I am not someone who will sugarcoat anything. And I will tell you this harsh truth. And I know I will be hated for that.

Where you are right now is the collection of choices you made in the past. If you want to change your future, you must change your present. You must make different choices that will put you on a new track.

Sometimes just a little change in routine can change your life drastically. For instance, drinking a glass of water in the morning or meditating for only 5 minutes.

Now the simple routine can be as little as dedicating 1 hour to a new business venture.

For instance, many people who have day jobs and kids have started their blogs. Which on the surface seems really hard. But these people are spending just 1-2 hours per day on their blogs instead of watching NetFlix.

The simple choice of giving their blog time instead of NetFlix is the opportunity that they have created to make a full-time income with their blog in 2 years. Those who are watching NetFlix will be at the same place in 2 years.

Speaking of NetFlix: The owners are making money while you are giving them your money.

Did it trigger something?

Can you see this subtle money transaction?

6. You Don’t Learn New Things

Life is a journey of positive and negative experiences where you are learning constantly. Isn’t it weird that most people who complete their studies never have the time to read a book?

My dear friend: Degrees never teach you anything about money or about life. Universities only teach you how to become an employee. That’s it.

In short, you will dedicate 40 years of your life to doing work that you hate to make your employer rich. Is that a fair deal?

I don’t think so.

When I started my first blog, my family and friends laughed at me. When I was unemployed and was reading books like crazy, people laughed at me. They said that books will make me crazy, people are stealing my money by selling books which won’t help me at all.

The truth is: What I have learned during the past few years has helped me to build my online business.

That being said, start to read right now. Even if you are reading only a few pages per day. It doesn’t matter. Just read every day.

7. You Run Away From Money Issues

Have you ever done a budget? I am sure the word budget sounds very boring to you, Well, if you haven’t done it before and you are still struggling don’t you think it’s time to sit down and write down all your expenses?

Just try to write down all your expenses for 1 month. Only 1 month.

I am more than confident that by the end of the month your jaw will drop when you will see how you are managing your money.

What are you afraid of? Are you afraid of finding the truth about your money management skills?

Face it or stay where you are. It’s that simple my friend.

If you don’t want to struggle financially, you will need to have control over your money.

8. You Spend Too Much Money When You Go Out

Spending money on entertainment is really fun and exciting. But it is also the main reason why so many people end up being poor.

If you look back on your spending habits for the last 6 months you will be really surprised how you are flushing money down the toilet.

Have you ever even monitored how much money you spent on:

Socializing and dinner
Smoking and alcohol
Gambling
Parties
Movies
Sports events
Coffee
Junk food

Now, I am not telling you not to spend money on these things because I know it brings a lot of happiness to your life. But you can surely plan it more effectively so that you can decrease your spending by at least 50%.

That 50% of the money you saved will be a life-changer.

The thing is: People all around you are so used to spending money this way, that it has become a way of living. Now, if you are struggling to pay your bills and you are still spending money on impulse, it’s quite obvious you cannot control your money.

9. You Don’t Have A Source Of Passive Income

For people who have a 9 to 5 job, the only way to make more money is to work harder. This is how the system works.

You trade your time for money. But the problem with this revenue model is that when you will become older, you won’t be able to put in the same amount of hours.

This is one of the main reasons why so many people who have a day job are having depression and developing bad habits that are detrimental to their health.

Now, given that your energy will drop as you age, the only solution is to find a way to work less and earn more.

This is where creating a passive income can help you. Trust me on that. If you don’t start NOW, you will regret it a lot later.

Even if you are only making $500-$1,000 per month in passive income, it will relieve a huge burden from your life.

Here are some best ways to create a passive income:

Start your own blog.
Start a YouTube channel.
Start a drop shipping business.
Start a drop servicing business.
Rent out part of your house with Airbnb.
Rent out some of your household items.
Create a course.
Write a book.
Try affiliate marketing.

Find out how you can start a money-making blog and make your first $1,000 in just 6 months.

10. You Overspent When Buying A New Car Or House

How many times have you seen people buying a house or a car which they cannot afford?

Ask yourself this question, what impact will a huge house actually have on your overall happiness in 1 year, and how much your new car will depreciate in just 1 year.

It’s better to have a small house and have that extra cash in hand than to be stressed out to pay a huge sum every single month.

Now if you are making $50,000 per year, it doesn’t make sense if you buy a car that is worth $50,000. That’s poor money management.

As a matter of fact, the truth is: Most of the time, rich people prefer to buy slightly used cars while poor people prefer to buy a new car.

11. You Try To Keep Up With The Joneses

If you are constantly trying to keep up with your neighbor you will always remain poor. This is the quickest way to seriously mess up your whole life.

How on earth can you let other people’s opinions determine the course of your own life?

Buying the latest gadgets, branded clothes, or having the best items in your house is not a good way to live your life especially when you are not making enough money.

Now, it doesn’t mean you cannot buy those things. If you can save at least 20% of your income and don’t have any debt, then for sure do what you want with your money. At least you know you have a system to save some money.

The truth is: Those people who you try to keep up with, are usually people who have already accumulated a lot of money and can afford those stuff without any significant pressure on their budget.

12. You Act Impulsively And People Target You Every Time

Most people buy on impulse. Every successful salesperson and company knows that. That’s why you are always bombarded by offers, discounts, and deals that seem really exciting.

Have you ever wondered if you really need to buy something just because it is PORTRAYED as a deal or discount?

For instance, I am sure you must have been targeted by many people when you go to a shopping mall. And most of the time you buy at least something that seemed really exciting at that time.

But after a few days, you see that item that you purchased lying there without having any kind of impact on your life.

Another example is when you go to a store and there is the famous “Buy one and get one for free” offer. For instance, if you buy a 50-inch TV you will get another 32-inch tv for free.

On the surface, it looks as if this is an awesome deal. Isn’t it?

But my dear friend, if that deal would resulted in a loss for that company, they would never have given you the deal in the first place. The price for both TVs has already been added and you are paying the same price believing that you got another TV for free.

13. Your Inability To Say NO

Being able to stand strong on your values and say NO to things that are not beneficial to you is crucial to surviving in the messed-up world.

I must admit I was a yes-man type of guy when I was a teen and in my early twenties. But I learned some important lessons down the road which helped me become the person I am today.

Right now, if I don’t want something I will say no politely. And you will be amazed at how much impact it can have on your life.

Trust me on that. It will change your life forever. And besides, you are on this planet to make your life better and do things that make you happy.

Never comprise on that.

Final Thoughts: 13 Reasons Why You Are Always Struggling Financially

So, these were the top 13 reasons why you are always struggling financially. It’s ok to struggle occasionally, but if you have struggled for a very long time, then it’s time to change your life.

If you reflect on everything that I have said in this post and make the necessary adjustments, you will see positive changes in your finances.

I know it can be really tough to change. That’s why you should try to change one thing at a time. Give it at least 3 months till it becomes a habit, then move to the next one.

This is the only way you will be financially independent. So go ahead save this post and come back to it whenever you feel you are not on the right track.

See you soon!